Virginia Workers Compensation

A sole proprietor with no employees in Virginia is not required to carry Workers' Compensation coverage for himself or herself. However, he or she can choose to cover himself or herself as an employee, providing the same medical payment and income replacement benefits available to any other employee through Workers' Compensation coverage.

In Virginia, Workers' Compensation coverage is only available through the private market, which means that you can purchase coverage through a licensed agent or broker in the state. You can also get your business insured quickly using an online portal such as CoverWallet, which can also provide you with other essential business insurance coverages.

On average, Virginia is among the most affordable states for businesses that need to purchase Workers' Compensation coverage. Rates are determined by multiple factors, including the type of work being performed, your business’s safety or claims record, as well as the payroll for your business. This method of calculating rates generally rewards lower risk businesses with more attractive rates.

Whether an independent contractor is considered to be an employee in Virginia is dependent upon several factors. The greatest factor is whether the business that hires an independent contractor exercises control over the means and method by which the work is performed. If the work of an independent contractor is closely supervised and directed, it's likely that the independent contractor will be legally considered to be an employee and will need to be insured.

Virginia requires nearly all employers with two or more employees to carry Workers’ Compensation coverage. If your business only employs one worker, coverage is optional for the state but may be required for contract work when working for other companies.